Discussion and possible action on any and all matters regarding the purchase of a new Pre-Engineered Metal Building (PEMB) for the Water Well Site #7 Building Expansion Project.  (Jorge Perez, Assistant Director of Public Works) 

The Department of Public Works – Water Division initiated the design of the Well Site No. 7 Operations Building Expansion concurrently with the construction of the new well and treatment unit system at the same site. The design for the operations building expansion is now complete.
 
To maintain the project schedule, the department is requesting authorization to proceed with early procurement of a pre-engineered metal building (PEMB). These buildings typically require 18–20 weeks for design and fabrication after issuance of a notice to proceed. Conducting a formal bid process would add an estimated 6–8 weeks to the project schedule.

To address the long lead time, the department obtained three price quotes from metal building suppliers, summarized as follows:

• Bunger Steel, Inc.: $66,365.00
• Rhino Steel Building Systems: Declined to provide a proposal.
• ProSteel STR, LLC: Proposal was not received by the requested date of 10/28/2025.

Staff recommends that the Mayor and City Council authorize the purchase of a pre-engineered metal building (PEMB) from Bunger Steel, Inc. in the amount of $66,365.00. This purchase is for the materials only, and so the State bidding threshold does not apply. Staff plans to bid out the construction piece. The State bidding process will apply.

For the materials in this agenda item, staff recommends approval of the purchase and requests the waiver of formal purchasing procedures as allowed under San Luis City Code, Section 3.05.010(F) because bidding out the materials would not result in a lower cost.